Small Power
Market Cap
₹29,505 ₹29,505 Cr.
P/E
48.90
PEG
1.74
PEG = P/E ÷ 5yr forward EPS CAGR
5yr forward EPS CAGR thesis · Base case

Base-case growth hinges on timely commissioning of the 5.1 GW under-construction generation portfolio and successful monetisation of BESS merchant capacity, with generation and storage contributing roughly equal shares of the revenue increase.

The bull case requires faster-than-expected commissioning and sustained peak-period price spreads for BESS, while the bear case materialises if PPA conversion stalls and BESS arbitrage declines concurrently.

Portfolio mix shift towards lower-margin BESS drives a steady EBITDA margin compression from 90.3% to 84.7% even in the base case.

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5Y Revenue & EBITDA Estimates
KEY TRIGGERS TO WATCH
  • Base-case growth hinges on timely commissioning of the 5.1 GW under-construction generation portfolio and successful monetisation of BESS merchant capacity, with generation and storage contributing roughly equal shares of the revenue increase.
  • The bull case requires faster-than-expected commissioning and sustained peak-period price spreads for BESS, while the bear case materialises if PPA conversion stalls and BESS arbitrage declines concurrently.
  • Portfolio mix shift towards lower-margin BESS drives a steady EBITDA margin compression from 90.3% to 84.7% even in the base case.
Bear : 0.4% CAGR ₹186 Cr
Base: 5.4% CAGR ₹236 Cr
Bull: 9.5% CAGR ₹286 Cr
Management Credibility Report
TRACK RECORD
  • Management consistently under-promises and over-delivers on financial and operational metrics under direct control, with cost-of-debt reduction and BESS commissioning exceeding guidance.
  • The only misses stem from external dependencies — CTU transmission delays ran 2x guided maximum and an NTPC project was cancelled by regulatory action — revealing a systematic underestimation of infrastructure timelines.
  • Equity raise guidance proved reversible within 19 months as the project pipeline expanded, indicating that capital structure commitments are conditional on growth scope.
Met : 15
Progress: 2
Missed : 1
Risk Probe Report
WORST-CASE SCENARIO
  • Debt load of ₹190 billion with negative free cash flow creates existential risk under a compound stress scenario of PPA delays, refinancing spike, and curtailment.
  • Treasury income constitutes ~62% of PBT, masking thin core operating profit that will be exposed as cash deploys into projects.
  • Corporate guarantees exceed parent net worth, linking parent solvency to performance of subsidiary SPVs.
High Risk : 0
Medium Risk : 8
Low Risk : 9
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